Application of chapter; reformation of disposition created before
May 8, 1991
Sec. 1. (a) Except as provided in subsection (b), this chapter
applies to a nonvested property interest or a power of appointment
that is created on or after May 8, 1991. For purposes of this section,
a nonvested property interest or a power of appointment created by
the exercise of a power of appointment is created when the power is
irrevocably exercised or when a revocable exercise becomes
irrevocable.
(b) If a nonvested property interest or a power of appointment was
created before May 8, 1991, and:
(1) is determined in a judicial proceeding commenced on or
after May 8, 1991, to violate this state's rule against perpetuities
as that rule existed before May 8, 1991; or
(2) may violate this state's rule against perpetuities as that rule
existed before May 8, 1991;
a court upon the petition of an interested person shall reform the
disposition by inserting a savings clause that most closely preserves
the transferor's plan of distribution and is within the limits of the rule
against perpetuities applicable when the nonvested property interest
or power of appointment was created.
As added by P.L.2-2002, SEC.2.
Last modified: May 24, 2006